Business Plan for your Company

The true purpose of a business plan is to give an oversight of your business. It will let investors and banks know that you serious about doing business. A business plan is very important to these people. The reason for this is to minimize the risk they will be taking when investing in your idea.

When applying for funding in South Africa, a business plan is an essential. As soon as you have a proper business plan – especially one setup by a professional – funding becomes a simple process.

A business plan will prove to people know that you have researched your idea and took time to turn the idea into action. You will also come across as a professional and as goal orientated. There are only benefits to gain from creating a business plan. It may take some time, but in the long run it will help you to stay focused on the main goals of the business.

Never think that a business plan is just for the big companies with hundreds of employees. Even a sole ownership can have a business plan. The idea is what formed in your mind. A business plan is that idea, turned into words on a paper. Follow these few simple steps to form the base of your business plan.

The Cover Page

Be sure to have a simple, yet catchy cover page. This will be the first impression that other people will get of your business plan. Keep words to the minimum and do not use too many different colours.

The Index Page

The index page makes referring to a certain section easier. It also gives the reader an overview of what to expect in the business plan. It will also give the impression that you like to be organized and well presented.

A Short Summary

This is where you give a short and detailed description of your business idea. Also provide reasons for why you believe that your business will be successful. Do not write any negative comments on this part of the business plan.

The Business Description

This is where you go into detail about your business idea. You should describe exactly how you will earn money and how your business will function on a daily basis. Here you can mention the advantages and disadvantages of your company. A simple SWOT analysis can be added to this part.

Plans for Marketing

Explain here how you would draw customers to your business. You can also add which form of marketing you will use most. Another extra you can add to this part is market research you have done to indicate the popularity of your idea among future customers.

Management Structures

Here you will explain who will be responsible for what. Be sure to include it even if you, as owner, is the only person running the business. Also indicate which skills will be needed to do a certain job and be sure that you and other future employees possess these skills. If you are planning to outsource some functions, you should also mention it here.

Asset Assessment

This is where you will indicate from where you will operate your business. You should also record all the assets that you will need to do business. This can range from office equipment to transport vehicles.

Financial Breakdown

This section will almost be the most important part of a business plan, so pay special attention to detail here. There are three main financial statements that you can include, only as predictions at this stage.

Budget sheet

This is where you will state all the income and expenses that you think you will have over a certain time period. Not cents are ever shown on a budget sheet. You should always aim to keep your income and expenses within the limits of your budget. This will ensure proper cash flow in your business.

Income statement

Here you will record every sent that you physically received over a certain amount of time. At the end of the statement you will get to a net income before and after tax.

Balance sheet

A balance sheet will always have to balance. Therefore its name. A balance sheet consists of all your long and short term assets, as well as liabilities and owner’s equity. The short and long term assets should even out with the liabilities and owner’s equity.

This might seem like an information overdose, but once you get started on these sections you will realize that everything you have written down, have been in your mind all the time. Remember the old saying, “Failing to plan is planning to fail”? Nothing has ever been more true!

Apply for a Business Plan online – which are drawn up by professionals.

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